The AI startup dilemma: To pivot or perish

July 29, 2025

, By The Economic Times

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In the last few weeks, four Indian AI startups have announced that they are shutting in the face of challenges such as scaling up, raising funds and pivoting as technology shifts rapidly. This includes two Y-Combinator companies Wuri and CodeParrot as well as Subtl.ai and Locale.ai. This is not unusual in the world of startups. According to the US Bureau of Labor Statistics, more than 50% of the startups fail within five years.

However, unlike the previous cycles, beyond operational challenges, these closures are coming amid rapid technological…

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The AI startup dilemma: To pivot or perish

July 29, 2025

, Published By The Economic Times

In the last few weeks, four Indian AI startups have announced that they are shutting in the face of challenges such as scaling up, raising funds and pivoting as technology shifts rapidly. This includes two Y-Combinator companies Wuri and CodeParrot as well as Subtl.ai and Locale.ai. This is not unusual in the world of startups. According to the US Bureau of Labor Statistics, more than 50% of the startups fail within five years.

However, unlike the previous cycles, beyond operational challenges, these closures are coming amid rapid technological…

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Previous News

Scale AI competitor Micro1 raising funds at $500 million valuation

Next News

PayPal launches crypto payment tool using PYUSD stablecoin

The Economic Times

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Popular

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